Shri Vive Sudhakar, CHENNAI V. DCIT, CHENNAI

ITSSA 91/CHNY/2006

• Counselvise Citation: [2016] 122 COUNSELVISE.COM (IT) 2348 (ITAT-CHENNAI)
• Duration Of Justice: 10 year(s) 4 month(s) 21 day(s)
• Appeal Type: Income Tax (Search & Seizure) Appeal
• Pronouncement Date: 23-09-2016
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: C
• Assessment Year: misc
• Appeal Filed On: 02-05-2006
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Assessee Lawyers: S SRIDHAR
• Keywords: Unexplained cash credit; Gift; Depreciation; Block assessment; Unabsorbed depreciation
• Section: 69C; 143(3); 32; 147; 148; 132; 144; 139

Judgement Text

, , IN THE INCOME TAX APPELLATE TRIBUNAL C BENCH, CHENNAI . . . , . !' , $ % BEFORE SHRI N.R.S. GANESAN, JUDICIAL MEMBER AND SHRI A. MOHAN ALANKAMONY, ACCOUNTANT MEMBER I.T.(SS) A. NO. 91/MDS/2006 BLOCK ASSESSMENT PERIOD: 1.4.1986 TO 31.3.1996 AN D 1.4.1996 TO 24.9.1996 SHRI VIVE SUDHAKAR (FORMERLY KNOWN AS VN.SUDHAGARAN) 4, 9 TH CROSS STREET, SRI KAPALEESHWARAR NAGAR, NEELANKARAI, CHENNAI - 600 041. PAN : AMDPS 2184 A V. THE DEPUTY COMMISSIONER OF INCOME TAX, CENTRAL CIRCLE II(2), CHENNAI - 600 034. ('(/ APPELLANT) (*+'(/ RESPONDENT) '( , - / APPELLANT BY : SHRI S. SRIDHAR, ADVOCATE *+'( , - / RESPONDENT BY : SHRI T.R. SENTHIL KUMAR, SR. S TANDING COUNSEL . , /$ / DATE OF HEARING : 31.08.2016 0!1 , /$ / DATE OF PRONOUNCEMENT : 23.09.2016 / O R D E R PER N.R.S. GANESAN, JUDICIAL MEMBER: THIS APPEAL OF THE ASSESSEE IS DIRECTED AGAINST THE ORDER OF ASSESSMENT DATED 30.03.2006 AND PERTAINS TO BLOCK P ERIOD FROM 01.04.1986 TO 31.03.1996 AND THE BLOCK PERIOD FROM 01.04.1996 TO 24.09.1996. 2 I.T.(SS) A. NO.91/MDS/06 2. SHRI S. SRIDHAR, THE LD.COUNSEL FOR THE ASSESSEE , SUBMITTED THAT THERE WAS A SEARCH IN THE PREMISES OF THE ASSE SSEE UNDER SECTION 132 OF THE INCOME-TAX ACT, 1961 (IN SHORT ' THE ACT') ON 24.09.1996. IN RESPONSE TO NOTICE ISSUED UNDER SEC TION 158BC OF THE ACT, THE ASSESSEE HAS FURNISHED RETURN FOR THE BLOCK PERIOD ADMITTING UNDISCLOSED INCOME OF ` 63,93,720/-. IN THE ORIGINAL ROUND OF LITIGATION, THIS TRIBUNAL SET ASIDE THE ORDER OF THE ASSESSING OFFICER AND DIRECTED THE ASSESSING OFFICER TO FURNISH CERTA IN DOCUMENTS, WHICH WERE SAID TO BE SEIZED BY ENFORCEMENT DIRECTO RATE. REFERRING TO SECTION 158BB(1) OF THE ACT, THE LD.COUNSEL FOR THE ASSESSEE SUBMITTED THAT THE PRESENT ASSESSMENT IS UNDER THE OLD SCHEME OF BLOCK ASSESSMENT UNDER SECTION 158BC OF THE ACT, TH EREFORE, THE ASSESSING OFFICER HAS TO CONFINE HIMSELF ONLY TO TH E EVIDENCE FOUND DURING THE COURSE OF SEARCH OPERATION AND SUCH OTHE R MATERIAL WHICH ARE RELEVANT WITH THE MATERIAL FOUND DURING THE COU RSE OF SEARCH OPERATION. IN THE CASE BEFORE US, ACCORDING TO THE LD. COUNSEL, NO MATERIAL WAS FOUND DURING THE COURSE OF SEARCH OPER ATION. THE SO- CALLED MATERIAL SEIZED BY ENFORCEMENT DIRECTORATE I S NOT CONNECTED WITH ANY OTHER MATERIAL FOUND DURING THE COURSE OF SEARCH OPERATION. IN FACT, NO MATERIAL WAS FOUND IN THE COURSE OF SEA RCH OPERATION, 3 I.T.(SS) A. NO.91/MDS/06 THEREFORE, THE MATERIAL AVAILABLE WITH ENFORCEMENT DIRECTORATE MAY BE RELEVANT FOR THE PURPOSE OF COMPLETING REGULAR A SSESSMENT UNDER SECTION 143(3) OF THE ACT AND CERTAINLY SUCH MATERI AL ARE NOT RELEVANT FOR THE PURPOSE OF COMPLETING THE BLOCK AS SESSMENT UNDER SECTION 153BC OF THE ACT. 3. REFERRING TO THE ASSESSMENT ORDER, THE LD.COUNSE L SUBMITTED THAT FOR THE ASSESSMENT YEAR 1992-93, THE ASSESSING OFFICER ASSESSED ` 37,890/- AS UNDISCLOSED INCOME FOR THE BLOCK PERIOD . REFERRING TO THE PAGE 112 OF PAPER-BOOK, THE LD.COU NSEL SUBMITTED THAT THIS IS A COPY OF THE RETURN FILED BY THE ASSE SSEE BEFORE THE ASSESSING OFFICER FOR THE BLOCK PERIOD AND THE ASSE SSEE HIMSELF MADE AN ADDITION OF ` 37,890/- AS UNDISCLOSED INCOME FOR THE BLOCK PERIOD. REFERRING TO THE ASSESSMENT YEAR 1993-94, THE ASSESSING OFFICER FOUND THAT THE ASSESSEE DISCLOSED UNDISCLOS ED INCOME OF ` 9,46,239/- BEFORE ALLOWING DEDUCTION UNDER SECTION 80L OF THE ACT. HOWEVER, THE ASSESSING OFFICER FOUND THAT WHILE GIV ING BREAK-UP OF INCOME ADMITTED TO THE EXTENT OF ` 9,39,240/-, THE ASSESSEE ADMITTED THE CASH RECEIPT OF ` 8,00,000/- FROM THE BUSINESS. THE ASSESSING OFFICER HAS ALSO FOUND THAT A CREDIT OF ` 1,22,380/- WAS FOUND IN THE BANK ACCOUNT AND ` 5,710/- TOWARDS INSURANCE CHARGES. THIS 4 I.T.(SS) A. NO.91/MDS/06 INSURANCE CHARGE WAS SAID TO BE PAID TOWARDS SWARAJ MAZDA VAN. ACCORDING TO THE LD. COUNSEL, NO SEARCH MATERIAL WA S FOUND EITHER WITH REGARD TO CREDIT OF ` 1,22,380 IN THE BANK ACCOUNT OR PAYMENT OF INSURANCE CHARGES FOR SWARAJ MAZDA VAN. WHAT WAS D ISCLOSED BY THE ASSESSEE WAS ADMITTEDLY INTEREST INCOME, HENCE ELIGIBLE FOR DEDUCTION UNDER SECTION 80L OF THE ACT. ACCORDING TO THE LD. COUNSEL, WHEN THE UNDISCLOSED INCOME WAS COMPUTED F OR THE BLOCK PERIOD, THE ASSESSEE IS ELIGIBLE FOR DEDUCTION UNDE R SECTION 80L OF THE ACT ALSO. THEREFORE, ACCORDING TO THE LD. COUN SEL, THE ASSESSING OFFICER IS NOT JUSTIFIED IN MAKING ADDITI ON WITHOUT ANY SEARCH MATERIAL. 4. SIMILARLY, FOR ASSESSMENT YEAR 1994-95, THE LD.C OUNSEL FOR THE ASSESSEE SUBMITTED THAT THE ASSESSEE HIMSELF DI SCLOSED A SUM OF ` 8,39,380/- AS UNDISCLOSED INCOME FOR THE BLOCK PERI OD. HOWEVER, THE ASSESSING OFFICER FOUND THAT THERE WAS CASH RECEIPT OF ` 3,60,000/- AND ANOTHER CREDIT OF ` 1,00,329/- IN THE BANK ACCOUNT. THE ASSESSING OFFICER HAS ALSO FOUND THAT THE ASSES SEE HAS INVESTED A SUM OF ` 4,85,000/- IN THE LAND. HOWEVER, NO MATERIAL WAS AVAILABLE ON RECORD TO SUGGEST THE INVESTMENT A ND NO MATERIAL WAS FOUND DURING THE COURSE OF SEARCH OPERATION EIT HER FOR 5 I.T.(SS) A. NO.91/MDS/06 DEPOSITING OF MONEY IN THE BANK ACCOUNT OR INVESTME NT MADE IN THE LANDED PROPERTIES. IN THE ABSENCE OF ANY MATERIAL DURING THE COURSE OF SEARCH OPERATION, ACCORDING TO THE LD. COUNSEL, THE ASSESSING OFFICER IS BOUND TO TAKE THE INCOME DISCLOSED BY TH E ASSESSEE FOR THE BLOCK PERIOD IN THE RETURN OF INCOME TO THE EXT ENT OF ` 8,39,380/-. IF AT ALL THERE IS ANY MATERIAL FOR MAKING INVESTME NT IN THE LANDED PROPERTIES AND CREDIT IN THE BANK ACCOUNT, IT IS FO R THE ASSESSING OFFICER TO FRAME THE ASSESSMENT UNDER SECTION 143(3 ) OF THE ACT IN THE REGULAR CURSE. ACCORDING TO THE LD. COUNSEL, T HE ASSESSING OFFICER CANNOT BRING THE MATERIAL, WHICH WAS NOT RE LATABLE TO MATERIAL FOUND DURING THE COURSE OF SEARCH OPERATION FOR THE BLOCK PERIOD, THEREFORE, THE ASSESSING OFFICER IS NOT JUSTIFIED I N COMPUTING THE UNDISCLOSED INCOME AT ` 13,19,380/-. 5. REFERRING TO THE ASSESSMENT YEAR 1995-96, THE LD .COUNSEL FOR THE ASSESSEE SUBMITTED THAT THE ASSESSEE HIMSEL F ADMITTED UNDISCLOSED INCOME OF ` 27,20,130/- AND PAID THE TAXES. THE ASSESSEE ALSO DISCLOSED A GROSS INCOME OF ` 78,50,003/-, INCLUDING THE CASH RECEIPT OF ` 29,00,000/- FROM THE BUSINESS AND REMUNERATION FROM M/S ANJANEYA PRINTERS PVT. LTD. AFTER CONSIDERING THE EXPENDITURE OF ` 51,12,112/-, THE ASSESSEE HAS 6 I.T.(SS) A. NO.91/MDS/06 DISCLOSED NET INCOME FOR TAXATION TO THE EXTENT OF ` 27,37,891/- AND THE SAME WAS OFFERED FOR BLOCK PERIOD FOR TAXATION. THE ASSESSING OFFICER WITHOUT ANY MATERIAL FOUND DURING THE COURS E OF SEARCH OPERATION OR THE INFORMATION WHICH IS RELEVANT TO T HE MATERIAL FOUND DURING THE COURSE OF SEARCH OPERATION, ESTIMATED TH E INCOME AT ` 1,22,80,330/-. ACCORDING TO THE LD. COUNSEL, IN TH E ABSENCE OF ANY SEARCH MATERIAL, THERE IS NO JUSTIFICATION IN MAKIN G ADDITION TOWARDS COMMISSION, INVESTMENT IN THE BANK ACCOUNT, INVESTM ENT IN LORRY, ETC. REFERRING TO SECTION 158BB(1) OF THE ACT, THE LD.COUNSEL SUBMITTED THAT THE ASSESSING OFFICER CANNOT TRAVEL BEYOND THE PROVISIONS OF SECTION 158BB(1) OF THE ACT. IN OTHE R WORDS, ACCORDING TO THE LD. COUNSEL, THE ASSESSING OFFICER CANNOT GO BEYOND THE MATERIAL FOUND DURING THE COURSE OF SEAR CH OPERATION AND THE INFORMATION WHICH IS RELATABLE TO MATERIAL FOUND DURING THE COURSE OF SEARCH OPERATION. 6. FOR THE ASSESSMENT YEAR 1996-97, THE ASSESSEE HI MSELF DISCLOSED AN INCOME OF ` 18,57,080/-. DURING THE COURSE OF BLOCK ASSESSMENT, THE ASSESSING OFFICER FOUND THAT THE AS SESSEE ADMITTED RECEIPT OF GIFT TO THE EXTENT OF ` 10,00,000/- IN THE NET WEALTH STATEMENT AND ALSO ADMITTED GOLD JEWELLERY TO THE E XTENT OF 7 I.T.(SS) A. NO.91/MDS/06 ` 17,00,000/- AND ` 3,00,000/- RESPECTIVELY. THE ASSESSEE EXPLAINED BEFORE THE ASSESSING OFFICER THAT THE GOLD JEWELLER Y WAS NOT BELONGING TO HIM AND IT WAS OWNED BY ASSESSEES SIS TER MRS. SRIDHOLADEVI. MOREOVER, NO MATERIAL WAS FOUND DURI NG THE COURSE OF SEARCH OPERATION. IN THE ABSENCE OF ANY SEARCH MAT ERIAL, ACCORDING TO THE LD. COUNSEL, THE ASSESSING OFFICER CANNOT TR AVEL BEYOND THE MATERIAL FOUND DURING THE COURSE OF SEARCH OPERATIO N. FOR THE ASSESSMENT YEAR 1997-98, ACCORDING TO THE LD. COUNS EL, THE ASSESSEE HAS DISCLOSED UNDISCLOSED INCOME TO THE EX TENT OF ` 39,130/-. HOWEVER, THE ASSESSING OFFICER IGNORED T HE INCOME DECLARED BY THE ASSESSEE AND MADE AN ADDITION OF ` 1,10,000/-. THEREFORE, ACCORDING TO THE LD. COUNSEL, THE ENTIRE BLOCK ASSESSMENT MADE BY THE ASSESSING OFFICER IS NOT JUS TIFIED. THE LD.COUNSEL FURTHER SUBMITTED THAT THE ASSESSEE PAID THE TAXES ON THE UNDISCLOSED INCOME DISCLOSED IN THE BLOCK RETUR N TO THE EXTENT OF ` 63,93,720/-, THEREFORE, THE ADDITION MADE BY THE AS SESSING OFFICER OVER AND ABOVE THE INCOME DISCLOSED IN THE BLOCK RE TURN CANNOT BE SUSTAINED. 7. ON THE CONTRARY, SHRI T.R. SENTHIL KUMAR, LD. SR . STANDING COUNSEL FOR THE REVENUE, SUBMITTED THAT IT IS NOT C ORRECT TO SAY THAT 8 I.T.(SS) A. NO.91/MDS/06 THERE WAS NO MATERIAL FOUND DURING THE COURSE OF SE ARCH OPERATION. THIS TRIBUNAL IN THE FIRST ROUND OF LITIGATION, DIR ECTED THE ASSESSING OFFICER TO FURNISH THE MATERIAL SEIZED BY ENFORCEME NT DIRECTORATE TO THE ASSESSEE AND THEREAFTER COMPLETE THE ASSESSMENT . THE LD. SR. STANDING COUNSEL FURTHER SUBMITTED THAT THE DIRECTI ON OF THIS TRIBUNAL IN THE EARLIER ROUND OF LITIGATION IS EXTRACTED BY THE ASSESSING OFFICER AT PAGE 2 OF THE IMPUGNED ORDER OF ASSESSMENT. REF ERRING TO THE ASSESSMENT ORDER, THE LD. SR. STANDING COUNSEL SUBM ITTED THAT THE ASSESSEE HAS NOT FILED ANY RETURN OF INCOME BEFORE THE SEARCH. THE ASSESSEE HAS NOT MAINTAINED ANY BOOKS OF ACCOUNT IN THE REGULAR COURSE. DURING THE COURSE OF SEARCH OPERATION, THE REVENUE AUTHORITIES FOUND CASH OF ` 76,400/-. THIS IS ALSO ADMITTED BY THE ASSESSEE IN THE RETURN OF INCOME FILED, A COPY OF W HICH IS AVAILABLE AT PAGE 111 OF THE PAPER-BOOK. THE REVENUE AUTHORI TIES HAVE ALSO FOUND THAT 5987 GMS OF GOLD JEWELLERY, OUT OF WHICH , 4500 GMS WERE SEIZED. THE REVENUE AUTHORITIES HAVE ALSO FOUND TH AT SILVER ARTICLES OF 98 KGS WERE ALSO SEIZED BY REVENUE AUTHORITIES. ON A QUERY FROM THE BENCH WHETHER THE REVENUE AUTHORITIES FOUN D ANY MATERIAL OTHER THAN CASH OF ` 76,400/-, JEWELLERY OF 5987 GMS AND SILVER ARTICLES OF 98 KGS? THE LD. SR. STANDING COUNSEL S UBMITTED THAT THE SEARCHED MATERIAL WERE NOT AVAILABLE WITH HIM. THE ASSESSING 9 I.T.(SS) A. NO.91/MDS/06 OFFICER WAS ALSO PRESENT DURING THE COURSE OF HEARI NG, CLARIFIED THAT HE COULD NOT TRACE OUT THE SEARCHED MATERIAL. 8. REFERRING TO SECTION 158BB OF THE ACT, THE LD. S R. STANDING COUNSEL SUBMITTED THAT THE ASSESSING OFFICER HAS TO DETERMINE THE UNDISCLOSED INCOME ON THE BASIS OF MATERIAL AVAILAB LE ON RECORDS. THE UNDISCLOSED INCOME UNDER SECTION 158B(B) OF THE ACT IS COMPREHENSIVE ONE AND INCLUDES MONEY, BULLION, JEWE LLERY AND OTHER VALUABLE ARTICLES FOUND, WHICH WOULD NOT HAVE BEEN DISCLOSED TO THE DEPARTMENT FOR TAXATION. THEREFORE, WHAT IS REQUIRED TO BE CONSIDERED IS WHETHER THE ASSESSEE WOULD HAVE DISCL OSED THE INCOME IF THERE WAS NO SEARCH? IN THIS CASE, THE A SSESSEE WOULD NOT HAVE DISCLOSED THE INCOME IF IT WAS NOT UNEARTH ED DURING THE COURSE OF SEARCH OPERATION. THEREFORE, ACCORDING T O THE LD. SR. STANDING COUNSEL, WHEN THE ASSESSEE HAS NO INTENTIO N TO DISCLOSE THE INCOME AND IT WAS DISCLOSED ONLY AFTER THE SEAR CH, SUCH INCOME WOULD HAVE CHARACTERISTICS OF UNDISCLOSED INCOME AS ENVISAGED IN SECTION 158B(B) OF THE ACT. IN THE CASE BEFORE US, THE ASSESSEE HAS NOT FILED ANY RETURN OF INCOME BEFORE THE DATE OF S EARCH AND IT WAS FILED ONLY AFTER THE SEARCH FOR THE BLOCK PERIOD. THE BOOKS OF ACCOUNT OF THE ASSESSEE WERE NOT MAINTAINED IN THE REGULAR COURSE 10 I.T.(SS) A. NO.91/MDS/06 OF BUSINESS. THEREFORE, THE ASSESSING OFFICER HAS RIGHTLY COMPUTED THE UNDISCLOSED INCOME FOR THE BLOCK PERIOD. REFER RING TO THE EARLIER ASSESSMENT ORDER DATED 29.10.1997, THE LD. SR. STAN DING COUNSEL SUBMITTED THAT WHAT WAS FOUND DURING THE COURSE OF SEARCH OPERATION IS CASH, GOLD JEWELLERY AND SILVER ARTICL ES. A COPY OF THE EARLIER ASSESSMENT ORDER DATED 29.10.1997 IS AVAILA BLE AT PAGE 58 OF THE PAPER-BOOK. 9. WE HAVE CONSIDERED THE RIVAL SUBMISSIONS ON EITH ER SIDE AND PERUSED THE RELEVANT MATERIAL AVAILABLE ON RECORD. IN THE CASE BEFORE US, THERE WAS SEARCH OPERATION IN THE PREMIS ES OF THE ASSESSEE ON 24.09.1996. THE BLOCK PERIOD IS 1992-9 3 TO 1997-98. ALMOST TWENTY YEARS HAS EXPIRED AFTER THE SEARCH IN THE PREMISES OF THE ASSESSEE. IN THE EARLIER ASSESSMENT ORDER DATE D 29.10.1997, THE ASSESSING OFFICER HAS REFERRED TO THE MATERIAL FOUND DURING THE COURSE OF SEARCH OPERATION, WHICH ARE AS FOLLOWS:- (1) CASH : ` 76,400 (2) GOLD JEWELLERY : 5987 GMS. (3) SILVER ARTICLES : 98 KGS. 11 I.T.(SS) A. NO.91/MDS/06 APART FROM THIS, THERE WAS NO REFERENCE ABOUT THE S EARCHED MATERIAL IN THE ASSESSMENT ORDER. WE HAVE CAREFULLY GONE TH ROUGH THE PROVISIONS OF SECTION 158BB(1) OF THE ACT WHICH REA DS AS FOLLOWS:- (1) THE UNDISCLOSED INCOME OF THE BLOCK PERIOD SHAL L BE THE AGGREGATE OF THE TOTAL INCOME OF THE PREVIOUS YEARS FALLING WITHIN THE BLOCK PERIOD COMPUTED, IN ACCORDANCE WITH THE PROVISIONS OF THIS ACT, ON THE BASIS OF EVIDENCE FOUND AS A RESUL T OF SEARCH OR REQUISITION OF BOOKS OF ACCOUNT OR OTHER DOCUMENTS AND SUCH OTHER MATERIALS OR INFORMATION AS ARE AVAILABLE WIT H THE ASSESSING OFFICER AND RELATABLE TO SUCH EVIDENCE, AS REDUCED BY THE AGGREGATE OF THE TOTAL INCOME, OR, AS THE CASE MAY BE, AS INCREASED BY THE AGGREGATE OF THE LOSSES OF SUCH PR EVIOUS YEARS, DETERMINED,-- (A) WHERE ASSESSMENTS UNDER SECTION 143 OR SECTION 144 OR SECTION 147 HAVE BEEN CONCLUDED PRIOR TO THE DATE OF COMMENCE MENT OF THE SEARCH OR THE DATE OF REQUISITION, ON THE BASIS OF SUCH ASSESSMENTS ; (B) WHERE RETURNS OF INCOME HAVE BEEN FILED UNDER S ECTION 139 OR IN RESPONSE TO A NOTICE ISSUED UNDER SUB-SECTION (1 ) OF SECTION 142 OR SECTION 148 BUT ASSESSMENTS HAVE NOT BEEN MADE TIL L THE DATE OF SEARCH OR REQUISITION, ON THE BASIS OF THE INCOM E DISCLOSED IN SUCH RETURNS ; (C) WHERE THE DUE DATE FOR FILING A RETURN OF INCOM E HAS EXPIRED, BUT NO RETURN OF INCOME HAS BEEN FILED, AS NIL ; (D) WHERE THE PREVIOUS YEAR HAS NOT ENDED OR THE DA TE OF FILING THE RETURN OF INCOME UNDER SUB-SECTION (1) OF SECTI ON 139 HAS NOT EXPIRED, ON THE BASIS OF ENTRIES RELATING TO SUCH IN COME OR TRANSACTIONS AS RECORDED IN THE BOOKS OF ACCOUNT AN D OTHER DOCUMENTS MAINTAINED IN THE NORMAL COURSE ON OR BEF ORE THE DATE OF THE SEARCH OR REQUISITION RELATING TO SUCH PREVI OUS YEARS ; (E) WHERE ANY ORDER OF SETTLEMENT HAS BEEN MADE UND ER SUB- SECTION (4) OF SECTION 245D, ON THE BASIS OF SUCH ORDER ; 12 I.T.(SS) A. NO.91/MDS/06 (F) WHERE AN ASSESSMENT OF UNDISCLOSED INCOME HAD B EEN MADE EARLIER UNDER CLAUSE (C) OF SECTION 158BC, ON THE BASI S OF SUCH ASSESSMENT. EXPLANATION FOR THE PURPOSES OF DETERMINATION OF UNDISCLOSED INCOME,-- (A) THE TOTAL INCOME OR LOSS OF EACH PREVIOUS YEAR SHALL, FOR THE PURPOSE OF AGGREGATION, BE TAKEN AS THE TOTAL INCOM E OR LOSS COMPUTED IN ACCORDANCE WITH THE PROVISIONS OF CHAPT ER IV WITHOUT GIVING EFFECT TO SET OFF OF BROUGHT FORWARD LOSSES UNDER CHAPTER VI OR UNABSORBED DEPRECIATION UNDER SUB-SECTION (2) OF SECTION 32 ; (B) OF A FIRM, RETURNED INCOME AND TOTAL INCOME ASS ESSED FOR EACH OF THE PREVIOUS YEARS FALLING WITHIN THE BLOCK PERI OD SHALL BE THE INCOME DETERMINED BEFORE ALLOWING DEDUCTION OF SALA RY, INTEREST, COMMISSION, BONUS OR REMUNERATION BY WHATEVER NAME CALLED TO ANY PARTNER NOT BEING A WORKING PARTNER : PROVIDED THAT UNDISCLOSED INCOME OF THE FIRM SO DET ERMINED SHALL NOT BE CHARGEABLE TO TAX IN THE HANDS OF THE PARTNER S, WHETHER ON ALLOCATION OR ON ACCOUNT OF ENHANCEMENT ; (C) ASSESSMENT UNDER SECTION 143 INCLUDES DETERMINATI ON OF INCOME UNDER SUB-SECTION (1B) OF SECTION 143. (2) IN COMPUTING THE UNDISCLOSED INCOME OF THE BLOCK PERIOD, THE PROVISIONS OF SECTIONS 68, 69, 69A, 69B AND 69C SHALL, SO FAR AS MAY BE, APPLY AND REFERENCES TO 'FINANCIAL YEAR' IN THOSE SECTIONS SHALL BE CONSTRUED AS REFERENCES TO THE RELEVANT PR EVIOUS YEAR FALLING IN THE BLOCK PERIOD INCLUDING THE PREVIOUS YEAR ENDING WITH THE DATE OF SEARCH OR OF THE REQUISITION. (3) THE BURDEN OF PROVING TO THE SATISFACTION OF THE ASSESSING OFFICER THAT ANY UNDISCLOSED INCOME HAD ALREADY BEE N DISCLOSED IN ANY RETURN OF INCOME FILED BY THE ASSESSEE BEFORE T HE COMMENCEMENT OF SEARCH OR OF THE REQUISITION, AS TH E CASE MAY BE, SHALL BE ON THE ASSESSEE. (4) FOR THE PURPOSES OF ASSESSMENT UNDER THIS CHAPTE R, LOSSES BROUGHT FORWARD FROM THE PREVIOUS YEAR UNDER CHAPTE R VI OR UNABSORBED DEPRECIATION UNDER SUB-SECTION (2) OF SEC TION 32 SHALL NOT BE SET OFF AGAINST THE UNDISCLOSED INCOME DETER MINED IN THE 13 I.T.(SS) A. NO.91/MDS/06 BLOCK ASSESSMENT UNDER THIS CHAPTER, BUT MAY BE CAR RIED FORWARD FOR BEING SET OFF IN THE REGULAR ASSESSMENTS. IN VIEW OF THIS SECTION, UNDISCLOSED INCOME OF THE BLOCK PERIOD SHALL BE COMPUTED ON THE BASIS OF EVIDENCE FOUND AS A RES ULT OF SEARCH OPERATION OR OTHER DOCUMENTS OR SUCH OTHER MATERIAL OR INFORMATION AS ARE AVAILABLE WITH THE ASSESSING OFFICER AND REL ATABLE TO THE EVIDENCE FOUND DURING THE COURSE OF SEARCH OPERATIO N. AS RIGHTLY SUBMITTED BY THE LD.COUNSEL FOR THE ASSESSEE, THE P ARLIAMENT IN THEIR WISDOM DEVISED A SPECIAL MECHANISM/PROCEDURE FOR COMPUTING UNDISCLOSED INCOME FOR THE BLOCK PERIOD. WHILE COM PUTING UNDISCLOSED INCOME FOR THE BLOCK PERIOD, THE ASSESS ING OFFICER CANNOT TRAVEL BEYOND THE EVIDENCE FOUND DURING THE COURSE OF SEARCH OPERATION OR THE DOCUMENTS OR SUCH OTHER MAT ERIAL OR INFORMATION AVAILABLE WITH THE ASSESSING OFFICER AN D RELATABLE TO MATERIAL FOUND DURING THE COURSE OF SEARCH OPERATIO N. 10. WE HAVE CAREFULLY GONE THROUGH THE PROVISIONS O F SECTION 158B(B) OF THE ACT WHICH DEFINES UNDISCLOSED INCOM E. UNDISCLOSED INCOME INCLUDES ANY MONEY, BULLION, J EWELLERY OR OTHER VALUABLES ARTICLES, ETC. WHICH HAS NOT BEEN O R WOULD NOT HAVE BEEN DISCLOSED FOR THE PURPOSE OF TAXATION OR ANY E XPENSE, DEDUCTION OR ALLOWANCE CLAIMED BY THE ASSESSEE UNDE R THIS ACT 14 I.T.(SS) A. NO.91/MDS/06 WHICH WAS FOUND TO BE FALSE. THIS IS THE DEFINITIO N OF UNDISCLOSED INCOME. FOR THE PURPOSE OF COMPUTING UNDISCLOSED INCOME AS DEFINED IN SECTION 158B(B) OF THE ACT, THE ASSESSIN G OFFICER HAS TO NECESSARILY FOLLOW THE PROCEDURE PROVIDED IN SECTIO N 158BB(1) OF THE ACT. IF ANY MONEY, BULLION, JEWELLERY OR ANY O THER MATERIALS ARE NOT FOUND DURING THE COURSE OF SEARCH OPERATION, TH EN THE ASSESSING OFFICER CANNOT MAKE ANY ADDITION ON THE BASIS OF TH E DEFINITION OF UNDISCLOSED INCOME. THE PROCEDURE PRESCRIBED BY SECTION 158BB(1) OF THE ACT ASSUMES SANCTITY AND THE ASSESS ING OFFICER CANNOT TRAVEL BEYOND THE LANGUAGE EMPLOYED BY THE P ARLIAMENT. THEREFORE, THIS TRIBUNAL IS OF THE CONSIDERED OPINI ON THAT THE ASSESSING OFFICER HAS TO NECESSARILY CONFINE HIMSEL F ONLY TO THE MATERIAL FOUND DURING THE COURSE OF SEARCH OPERATIO N AND THE DOCUMENTS OR INFORMATION WHICH ARE RELATABLE TO THE MATERIAL FOUND DURING THE COURSE OF SEARCH OPERATION. IN THE CASE BEFORE US, EITHER IN THE EARLIER ASSESSMENT ORDER OR IN THE PRESENT A SSESSMENT ORDER, WHICH IS IMPUGNED BEFORE THE TRIBUNAL, THE ASSESSIN G OFFICER IS NOT REFERRING TO ANY OTHER MATERIAL FOUND DURING THE CO URSE OF SEARCH OPERATION. THE LD. SR. STANDING COUNSEL FOR THE RE VENUE SUBMITTED THAT WHAT WAS FOUND DURING THE COURSE OF SEARCH OPE RATION IS CASH, GOLD JEWELLERY AND SILVER ARTICLES. ADMITTEDLY, NO ADDITION WAS MADE 15 I.T.(SS) A. NO.91/MDS/06 BY THE ASSESSING OFFICER IN RESPECT OF THE CASH, JE WELLERY AND SILVER ARTICLES FOUND DURING THE COURSE OF SEARCH OPERATIO N. 11. THE ASSESSING OFFICER, WHO WAS PRESENT BEFORE T HIS TRIBUNAL DURING THE COURSE OF HEARING, CLAIMED THAT HE COULD NOT TRACE OUT ANY SEIZED MATERIAL. WHAT WAS SAID TO BE SEIZED DURING THE COURSE OF SEARCH IS CASH, GOLD JEWELLERY AND SILVER ARTICLES. THEREFORE, THE REVENUE CANNOT SAY THAT SEIZED MATERIAL COULD NOT B E TRACED OUT. THIS APPEAL IS PENDING BEFORE THIS TRIBUNAL FOR THE LAST TEN YEARS. NO ADDITION WAS MADE WITH REGARD TO CASH, GOLD JEWE LLERY AND SILVER ARTICLES FOR THE BLOCK PERIOD. THE ASSESSING OFFIC ER MADE ADDITION ON THE BASIS OF POST SEARCH INFORMATION, WHICH ARE NOT RELATABLE TO EVIDENCE FOUND DURING THE COURSE OF SEARCH OPERATIO N. 12. NOW COMING TO THE ADDITION MADE BY THE ASSESSIN G OFFICER FOR THE ASSESSMENT YEAR 1992-93, THE ASSESSING OFFI CER COMPUTED THE UNDISCLOSED INCOME AT ` 37,890/-. IN FACT, THIS WAS ADMITTED BY THE ASSESSEE IN THE BLOCK RETURN FILED CONSEQUENT T O NOTICE ISSUED UNDER SECTION 158BC OF THE ACT. THE ASSESSEE HAS A LSO PAID THE TAXES. THE ASSESSING OFFICER HAS NOT MADE ANY ADDI TION OTHER THAN ` 37,890/- WHICH WAS DISCLOSED IN THE BLOCK RETURN. 16 I.T.(SS) A. NO.91/MDS/06 13. NOW COMING TO ASSESSMENT YEAR 1993-94, THE ASSE SSING OFFICER COMPUTED THE UNDISCLOSED INCOME AT ` 9,51,950/-, WHILE MAKING ADDITION OF INTEREST INCOME TO THE EXTENT OF ` 29,569/- AND UNEXPLAINED CASH CREDIT OF ` 1,22,380/-. WE HAVE CAREFULLY GONE THROUGH THE IMPUGNED ORDER OF ASSESSMENT. THE ASS ESSEE HIMSELF DISCLOSED ` 9,46,239/- BEFORE ALLOWING DEDUCTION UNDER SECTION 80L OF THE ACT. AFTER CLAIMING DEDUCTION UNDER SECTION 80L OF THE ACT, THE INCOME FOR THE BLOCK PERIOD WAS ` 9,39,240/-. THE ASSESSING OFFICER FOUND ON THE BASIS OF THE INFORMATION, SUBS EQUENT TO THE DATE OF SEARCH, THAT THERE ARE CREDITS IN THE BANK ACCOU NT AND INTEREST INCOME TO THE EXTENT OF ` 29,569/- WAS ALSO CREDITED. THIS TRIBUNAL IS OF THE CONSIDERED OPINION THAT NO SEARCH MATERIAL W AS AVAILABLE ON RECORD FOR THE ASSESSMENT YEAR 1993-94. THE ASSESS ING OFFICER HAS NOT REFERRED TO OR PLACED RELIANCE ON ANY OF TH E SEIZED MATERIAL FOUND DURING THE COURSE OF SEARCH OPERATION. IF TH E ASSESSING OFFICER HAD SOME MATERIAL, WHICH WAS FOUND DURING T HE COURSE OF ENQUIRY AFTER THE SEARCH, THIS TRIBUNAL IS OF THE C ONSIDERED OPINION THAT THAT MAY BE A GOOD MATERIAL FOR THE PURPOSE OF MAKING ADDITION IN THE REGULAR ASSESSMENT UNDER SECTION 143(3) OF T HE ACT. IN THE ABSENCE OF ANY MATERIAL DURING THE COURSE OF SEARCH OPERATION, ANY INFORMATION OR DOCUMENT WHICH IS NOT RELATABLE TO M ATERIAL FOUND 17 I.T.(SS) A. NO.91/MDS/06 DURING THE COURSE OF SEARCH OPERATION CANNOT BE A B ASIS FOR MAKING ADDITION FOR THE ASSESSMENT YEAR 1993-94. IN OTHER WORDS, ADDITION IF ANY CAN BE MADE IN THE REGULAR ASSESSMENT UNDER SECTION 143(3) OF THE ACT AND DEFINITELY NOT UNDER SECTION 158BC O F THE ACT. THE ASSESSING OFFICER HAS TO CONFINE HIMSELF TO THE INC OME ONLY TO THE EXTENT OF ` 9,39,240/-, WHICH WAS ADMITTEDLY DISCLOSED BY THE ASSESSEE. THIS TRIBUNAL IS OF THE CONSIDERED OPINI ON THAT THE ASSESSING OFFICER CANNOT TRAVEL BEYOND THE LANGUAGE EMPLOYED BY THE PARLIAMENT UNDER SECTION 158BB(1) OF THE ACT. IN OTHER WORDS, THE ASSESSING OFFICER CANNOT GO BEYOND THE MATERIAL FOUND DURING THE COURSE OF SEARCH OPERATION. IN THE ABSENCE OF ANY MATERIAL DURING THE COURSE OF SEARCH OPERATION, THE ADDITION MADE BY THE ASSESSING OFFICER CANNOT BE SUSTAINED. ACCORDINGLY , THE ORDER OF THE ASSESSMENT IS SET ASIDE AND THE ASSESSING OFFIC ER IS DIRECTED TO ACCEPT THE INCOME DISCLOSED BY THE ASSESSEE IN THE BLOCK PERIOD RETURN FOR 1993-94. 14. NOW COMING TO ASSESSMENT YEAR 1994-95, THE ASSE SSEE DISCLOSED A SUM OF ` 8,39,380/- AS UNDISCLOSED INCOME FOR THE BLOCK PERIOD. THE ASSESSING OFFICER FOUND THAT THE ASSESS EE HAS RECEIVED CASH OF ` 3,60,000/- AND ` 1,00,329/-, WHICH WERE CREDITED BY WAY OF 18 I.T.(SS) A. NO.91/MDS/06 CHEQUE/DD IN THE BANK ACCOUNT. FROM THE ASSESSMENT ORDER PARA 7.4, IT APPEARS THAT THE ASSESSEE HAS PURCHASED 30. 13 ACRES OF AGRICULTURAL LAND AT SIRUTHAVUR VILLAGE DURING FEBR UARY, 1994. THE OWNER OF THE LAND APPEARS TO HAVE ADMITTED THE PAYM ENT OF ON- MONEY OVER AND ABOVE THE SALE CONSIDERATION BEFORE THE DIRECTORATE OF VIGILANCE AND ANTI CORRUPTION, CHENNAI. BASED O N THE STATEMENT MADE BY THE OWNER OF THE LAND, THE ASSESSING OFFICE R FOUND THAT THE AGGREGATE SALE CONSIDERATION WAS ` 9,65,000/-. THEREFORE, HE FOUND A SUM OF ` 4,85,000/-, WHICH WAS SAID TO BE PAID BY WAY OF ON- MONEY OVER AND ABOVE THE SALE CONSIDERATION DISCLOS ED IN THE SALE DEED, WAS UNDISCLOSED INCOME FOR THE BLOCK PERIOD. AS OBSERVED EARLIER, SECTION 158BB(1) OF THE ACT CLEARLY SAYS T HAT THE ASSESSING OFFICER HAS TO COMPUTE THE AGGREGATE UNDISCLOSED IN COME FOR THE BLOCK PERIOD ON THE BASIS OF EVIDENCE FOUND DURING THE COURSE OF SEARCH OPERATION AND DOCUMENT OR MATERIAL OR OTHER INFORMATION AVAILABLE WITH THE ASSESSING OFFICER AND RELATABLE TO THE MATERIAL FOUND DURING THE COURSE OF SEARCH OPERATION. 15. IN THE CASE BEFORE US, NEITHER THE SALE DEED NO R THE STATEMENT SAID TO BE MADE BY THE OWNER OF THE LAND BEFORE THE DIRECTORATE OF VIGILANCE AND ANTI CORRUPTION WAS PA RT OF THE MATERIAL 19 I.T.(SS) A. NO.91/MDS/06 FOUND DURING THE COURSE OF SEARCH OPERATION. THE I NFORMATION NOW SAID TO BE AVAILABLE WITH THE ASSESSING OFFICER ARE NOT RELATABLE TO THE MATERIAL FOUND DURING THE COURSE OF SEARCH OPER ATION. THEREFORE, THIS TRIBUNAL IS OF THE CONSIDERED OPINI ON THAT THE ASSESSING OFFICER CANNOT TRAVEL BEYOND THE LANGUAGE EMPLOYED BY THE PARLIAMENT UNDER SECTION 158BB(1) OF THE ACT. IF THE LAND OWNER DECLARED THAT HE RECEIVED ON-MONEY FOR SALE OF LAND OVER AND ABOVE THE PRICE DISCLOSED IN THE SALE DEED AFTER THE SEAR CH OPERATION, THIS INFORMATION MAY BE GOOD FOR THE PURPOSE OF MAKING A SSESSMENT UNDER SECTION 143(3) OF THE ACT. BLOCK ASSESSMENT UNDER SECTION 158BC OF THE ACT BEING A SPECIAL PROCEDURE, THE ASS ESSING OFFICER CANNOT TRAVEL HIMSELF BEYOND THE LANGUAGE EMPLOYED BY THE PARLIAMENT. THIS TRIBUNAL IS OF THE CONSIDERED OPI NION THAT THE MATERIAL COLLECTED BY THE DIRECTORATE OF VIGILANCE AND ANTI CORRUPTION WITH REGARD TO ON-MONEY PAYMENT AND CASH CREDIT FOUND IN THE BANK ACCOUNT ARE THE BEST MATERIAL AVAILABLE BEFORE THE ASSESSING OFFICER FOR MAKING REGULAR ASSESSMENT UND ER SECTION 143(3) OF THE ACT. THEREFORE, THE ASSESSING OFFICE R HAS TO NECESSARILY CONFINE HIMSELF ONLY TO THE INCOME DISC LOSED BY THE ASSESSEE IN THE BLOCK RETURN CONSEQUENT TO THE NOTI CE ISSUED UNDER SECTION 158BC OF THE ACT. IN OTHER WORDS, THE ASSE SSING OFFICER 20 I.T.(SS) A. NO.91/MDS/06 HAS TO TAKE ` 8,39,380/- AS DISCLOSED BY THE ASSESSEE IN THE BLOC K RETURN FOR THE ASSESSMENT YEAR 1994-95. IN VIEW OF THE ABOVE DISCUSSION, THE ADDITION MADE BY THE ASSESSING OFFI CER OVER AND ABOVE ` 8,39,380/- IS DELETED. 16. NOW COMING TO ASSESSMENT YEAR 1995-96, THE ASSE SSEE HIMSELF DISCLOSED A SUM OF ` 27,20,130/- FOR THE BLOCK PERIOD. THE ASSESSING OFFICER, DURING THE ASSESSMENT PROCEEDING , FOUND THAT THE ASSESSEE WAS AWARDED CONTRACT BY DIRECTORATE OF INFORMATION AND PUBLIC RELATIONS, GOVERNMENT OF TAMIL NADU, FOR VIDEO AND FILM COVERAGE FOR THE 8 TH TAMIL WORLD CONFERENCE HELD AT THANJAVUR BETWEEN 01.01.1995 AND 05.01.1995. THE ASSESSING O FFICER OBSERVED THAT THE ASSESSEE HAS RECEIVED AN AMOUNT O F ` 49,87,000/- DURING THE YEAR UNDER CONSIDERATION, NAMELY, 1995-9 6. AFTER CONSIDERING THE EXPENSES, THE ASSESSING OFFICER COM PUTED THE NET INCOME AT ` 37,88,151/-. THE ASSESSING OFFICER HAS ALSO FOUND THAT THE ASSESSEE ACQUIRED ASHOK LEYLAND CARGO LORRY AT A COST OF ` 5,05,000/-. THE ASSESSING OFFICER FURTHER FOUND TH AT THERE WAS UNEXPLAINED CREDIT OF ` 22,00,000/- FROM M/S BHARANI BEACH RESORTS PVT. LTD. AND ULTIMATELY COMPUTED THE UNDISCLOSED I NCOME AT ` 1,22,80,330/-. 21 I.T.(SS) A. NO.91/MDS/06 17. WE HAVE CAREFULLY GONE THROUGH THE ORDER OF ASS ESSMENT. THE ASSESSING OFFICER HAS NOT REFERRED TO ANY OF TH E SEARCH MATERIAL FOUND DURING THE COURSE OF SEARCH OPERATION. THE S EARCH MATERIALS ARE NOT BROUGHT ON RECORD BY THE ASSESSING OFFICER. EVEN IN THE PAPER-BOOK FILED BEFORE THIS TRIBUNAL, THE REVENUE COULD NOT FILE ANY OF THE COPIES OF THE SEARCH MATERIAL. AS OBSERVED EARLIER, THE ASSESSING OFFICER HAS TO CONFINE HIMSELF ONLY TO TH E MATERIAL FOUND DURING THE COURSE OF SEARCH OPERATION AND INFORMATI ON WHICH ARE RELATABLE TO THE MATERIAL FOUND DURING THE COURSE O F SEARCH OPERATION. IT IS AN ADMITTED CASE OF THE REVENUE T HAT WHAT WAS FOUND DURING THE COURSE OF SEARCH OPERATION IS A CA SH OF ` 76,400/-, JEWELLERY OF 5987 GMS AND SILVER ARTICLES OF 98 KGS . THIS IS OBVIOUS FROM PAGE 1 OF THE PAPER-BOOK. AT PAGE 1, THE REVE NUE FILED ITS COMMENTS ON THE GROUNDS OF APPEAL FILED BEFORE THE TRIBUNAL. IT IS A SPECIFIC CASE OF THE REVENUE THAT NO MATERIAL WAS F OUND DURING THE COURSE OF SEARCH OPERATION. THIS IS FURTHER CONFIR MED BY THE LD. SR. STANDING COUNSEL AND THE COMMENTS MADE BY THE REVEN UE, A COPY OF WHICH IS AVAILABLE AT PAPER-BOOK 1 THAT OTHER TH AN CASH, JEWELLERY AND SILVER ARTICLES, NO OTHER MATERIAL WAS FOUND. IT IS AN ADMITTED FACT THAT NO ADDITION WAS MADE IN RESPECT OF CASH, JEWELLERY AND 22 I.T.(SS) A. NO.91/MDS/06 SILVER ARTICLES. IN THE ABSENCE OF ANY SEARCH MATE RIAL FOUND DURING THE COURSE OF SEARCH OPERATION, THIS TRIBUNAL IS OF THE CONSIDERED OPINION THAT THE ADDITION MADE BY THE ASSESSING OFF ICER IN THE ASSESSMENT ORDER FOR ASSESSMENT YEAR 1995-96 IS NOT JUSTIFIED. AS OBSERVED EARLIER, FOR THE ASSESSMENT YEAR 1995-96, THE ASSESSEE HIMSELF DISCLOSED AN INCOME OF ` 27,20,130/-. THE ADDITION MADE BY THE ASSESSING OFFICER IS NOT SUPPORTED BY ANY SEARC H MATERIAL OR INFORMATION RELATABLE TO THE MATERIAL FOUND DURING THE COURSE OF SEARCH OPERATION. IN THE ABSENCE OF ANY SEARCH MAT ERIAL, THIS TRIBUNAL IS OF THE CONSIDERED OPINION THAT THE ASSE SSING OFFICER HAS TO CONFINE HIMSELF TO THE INCOME DISCLOSED BY THE A SSESSEE IN THE RETURN FILED CONSEQUENT TO THE NOTICE ISSUED UNDER SECTION 158BC OF THE ACT. IN VIEW OF THE ABOVE, WE ARE UNABLE TO UP HOLD THE ORDER OF THE ASSESSING OFFICER. ACCORDINGLY, THE ORDER OF T HE ASSESSING OFFICER IS SET ASIDE AND THE ENTIRE ADDITION IS DEL ETED AND THE ASSESSING OFFICER HAS TO CONFINE HIMSELF TO THE UND ISCLOSED INCOME DISCLOSED BY THE ASSESSEE TO THE EXTENT OF ` 27,20,130/- FOR THE ASSESSMENT YEAR 1995-96 WHICH WAS RETURNED IN THE B LOCK PERIOD. 18. NOW COMING TO ASSESSMENT YEAR 1996-97, THE ASSE SSEE ADMITTEDLY DISCLOSED A SUM OF ` 18,57,080/- AS UNDISCLOSED INCOME 23 I.T.(SS) A. NO.91/MDS/06 FOR THE BLOCK PERIOD. THE ASSESSEE CLAIMED CASH GI FT OF ` 10,00,000/-. THE ASSESSING OFFICER HAS NOT REFERRE D ANY SEARCH MATERIAL IN THE IMPUGNED FOR THE BLOCK PERIOD. WIT HOUT PLACING ANY RELIANCE ON THE SEARCH MATERIAL, THE ASSESSING OFFI CER CLAIMS THAT THE GIFT WAS RECEIVED FROM STRANGERS AND ALSO ADDED A SUM OF ` 3,47,634/- AS INCOME FROM HIRING OF VAN. THE ASSES SING OFFICER REFERRED TO ALL THE INFORMATION AND MATERIAL GATHER ED EITHER FROM ENFORCEMENT DIRECTORATE OR OTHERWISE SUBSEQUENT TO SEARCH OPERATION. THIS TRIBUNAL IS OF THE CONSIDERED OPIN ION THAT THE MATERIAL RELIED ON BY THE ASSESSING OFFICER, WHICH WERE COLLECTED BY ENFORCEMENT DIRECTORATE AND THE ASSESSING OFFICER H IMSELF AFTER THE SEARCH OPERATION, ARE GOOD MATERIAL FOR THE PURPOSE OF MAKING ASSESSMENT UNDER REGULAR COURSE UNDER SECTION 143(3 ) OF THE ACT. SINCE NO SEARCH MATERIAL WAS FOUND IN RESPECT OF TH E SO-CALLED GIFT, INCOME FROM HIRING OF VAN, RECEIPT OF AMOUNT FROM D IRECTORATE OF INFORMATION AND PUBLIC RELATIONS CONTRACT, ETC. THE SE CANNOT BE INCLUDED AS UNDISCLOSED INCOME FOR THE BLOCK PERIOD . IN OTHER WORDS, THE ASSESSING OFFICER CANNOT TRAVEL BEYOND T HE MATERIAL FOUND DURING THE COURSE OF SEARCH OPERATION FOR THE PURPOSE OF COMPUTING UNDISCLOSED INCOME FOR THE BLOCK PERIOD. IN VIEW OF THE ABOVE, WE ARE UNABLE TO UPHOLD THE ADDITION OF ` 62,21,920/- AS 24 I.T.(SS) A. NO.91/MDS/06 UNDISCLOSED INCOME FOR THE ASSESSMENT YEAR 1996-97. ACCORDINGLY, THE ORDER OF THE ASSESSING OFFICER IS SET ASIDE AND THE ASSESSING OFFICER IS DIRECTED TO ACCEPT THE INCOME DISCLOSED BY THE ASSESSEE TO THE EXTENT OF ` 18,57,080/- FOR THE ASSESSMENT YEAR 1996-97 AND THE ADDITION MADE BY THE ASSESSING OFFICER OVER AND ABOVE ` 18,57,080/- IS DELETED. 19. SIMILARLY, FOR THE ASSESSMENT YEAR 1997-98, THE ASSESSEE DISCLOSED A SUM OF ` 39,130/- AS UNDISCLOSED INCOME FOR THE BLOCK PERIOD. HOWEVER, THE ASSESSING OFFICER IGNORED THE INCOME DISCLOSED BY THE ASSESSEE AND MADE ADDITION OF ` 1,00,000/- ON BEHALF OF SUPER DUPER TV ON THE BASIS OF THE LETTER OF THE ASSESSEE DATED 23.10.1997. THE ASSESSING OFFICER HAS ALSO M ADE ADDITION OF ` 10,000/- ON THE BASIS OF INCOME STATEMENT FILED BY THE ASSESSEE FOR ASSESSMENT YEAR 1997-98. ADMITTEDLY, THE SEARCH TO OK PLACE ON 24.09.1996. NO MATERIAL WAS FOUND WITH REGARD TO S UPER DUPER TV. THEREFORE, THE LETTER OF THE ASSESSEE DATED 23.10.1 997 MAY BE AN INFORMATION WHICH IS NOT RELATABLE TO THE MATERIAL FOUND DURING THE COURSE OF SEARCH OPERATION. THE LETTER OF THE ASSE SSEE DATED 23.10.1997 MAY BE AN INFORMATION AND EVIDENCE FOR T HE REGULAR ASSESSMENT UNDER SECTION 143(3) OF THE ACT. THIS T RIBUNAL IS OF THE 25 I.T.(SS) A. NO.91/MDS/06 CONSIDERED OPINION THAT SUCH INFORMATION IN THE LET TER OF THE ASSESSEE IS NOT RELATABLE TO THE MATERIAL FOUND DUR ING THE COURSE OF SEARCH OPERATION, THEREFORE, THE SAME CANNOT BE A B ASIS FOR MAKING ANY ADDITION FOR THE BLOCK PERIOD. HENCE, THE ADDI TION OF ` 1,10,000/- FOR THE ASSESSMENT YEAR 1997-98 IS DELETED. 20. IN THE RESULT, THE APPEAL OF THE ASSESSEE IS AL LOWED. ORDER PRONOUNCED ON 23 RD SEPTEMBER, 2016 AT CHENNAI. SD/- SD/- (. !' ) ( . . . ) (A. MOHAN ALANKAMONY) (N.R.S. GANESAN) $ / ACCOUNTANT MEMBER /JUDICIAL MEMBER /CHENNAI, 3 /DATED, THE 23 RD SEPTEMBER, 2016. KRI. , */45 651/ /COPY TO: 1. '( /APPELLANT 2. *+'( /RESPONDENT 3. CIT, CENTRAL-II, CHENNAI 4. 57 */ /DR 5. 89 : /GF.